Private investment differs from state-owned investment and foreign investment, and refers to investment from private economy.
Private investment includes investment from individuals, private companies, companies held by private assets and collectively-owned companies.
There are several characteristics of private investment in China. The industries in which private investment takes a comparatively bigger role are the manufacturing, property and agricultural industries.
The development of private investment in different regions is unbalanced. The eastern part of China is responsible for more than 60 percent of total private investment, while the mid and western areas contribute about 20 percent and less than 20 percent respectively.
The development of private investment is mainly self-motivated, since over 60 percent of the domestic loans are offered to state-owned companies and private companies only acquire about 25 percent.